KUALA LUMPUR (Nov 11): Tambun Indah Land Bhd today terminated the conditional sale and purchase agreement (SPA) that proposed to acquire 27 parcels of freehold lands from TPPT Sdn Bhd, which spans almost 210 acres, for a purchase consideration of RM150 million.
The SPA was entered into between Tambun Indah’s wholly-owned subsidiary Palmington Sdn Bhd, and TPPT on Jul 11, 2014.
According to Tambun Indah’s filing to Bursa Malaysia today, upon the termination of SPA, a refund of deposit that amount to RM15 million shall be expected from TPPT no later than 21 working days.
Nonetheless, Tambun Indah also mentioned that it will continue to seek opportunities to build up its landbank further.
The property stock shed eight sen or 3.54% to RM2.18 today with 614,600 shares traded.
Tambun Indah can embark on other land banking opportunities By RHB Research Institute Sdn Bhd / RHB Research Institute Sdn Bhd | November 13, 2014 : 9:24 AM MYT
Maintain “buy” with a lower target price (TP) of RM2.50 from RM3: Tambun Indah has terminated the deal with TPPT Sdn Bhd to acquire 209.5 acres (84.9ha) of land, as certain terms were not met. The land, adjacent to the southern side of Tambun’s Pearl City, costs RM150 million (RM16.50 per sq ft).
As certain conditions were not met, and given that expensive charges could be incurred if the period is extended, the management decided to call off the deal. The RM15 million deposit paid earlier will be refunded. While the market may be disappointed with the news, we think Tambun’s solid management team and its over 500 acres of land bank in Seberang Perai are still the company’s key selling points.
Moving forward, management can still embark on other land banking opportunities. The management’s execution track record is proven and the strategically-located Pearl City is still the key township in Seberang Perai Selatan to capture the rising housing demand there. Meanwhile, we also do not rule out the possibility that the deal could happen again, given that only Tambun has access to the land.
Tambun is scheduled to release its third quarter of financial year 2014 results in two weeks’ time. Underpinned by the RM493 million unbilled sales, earnings should be largely on track to reach our full-year forecast. In view of better earnings this year, we also expect the interim dividend to be higher than the 2 sen declared last year. New sales, however, will likely be slightly weaker due to the lack of new launches during the quarter.
Our forecasts are unchanged as the land is not planned to be developed over the next two to three years. Nevertheless, we expect the latest news to bring some weakness to share price. For now our TP is lowered to RM2.50 (14.7% upside) from RM3. We maintain our “buy” rating. — RHB Research Institute Sdn Bhd, Nov 12
INDIVIDUAL PERIOD CUMULATIVE PERIOD CURRENT YEAR QUARTER PRECEDING YEAR CORRESPONDING QUARTER CURRENT YEAR TO DATE PRECEDING YEAR CORRESPONDING PERIOD 30/09/2014 30/09/2013 30/09/2014 30/09/2013 $$'000 $$'000 $$'000 $$'000 1 Revenue 116,774 97,054 356,755 257,980 2 Profit/(loss) before tax 34,757 31,175 103,111 81,447 3 Profit/(loss) for the period 25,756 23,525 76,869 59,516 4 Profit/(loss) attributable to ordinary equity holders of the parent 25,535 17,208 76,263 42,919 5 Basic earnings/(loss) per share (Subunit) 6.22 5.22 18.96 13.49 6 Proposed/Declared dividend per share (Subunit) 3.00 2.00 3.00 2.00
AS AT END OF CURRENT QUARTER AS AT PRECEDING FINANCIAL YEAR END 7 Net assets per share attributable to ordinary equity holders of the parent ($$) 0.9200 0.7900 Definition of Subunit: In a currency system, there is usually a main unit (base) and subunit that is a fraction amount of the main unit.
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martiniclub7
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Posted by martiniclub7 > 2014-10-16 11:10 | Report Abuse
That is because funds are buying in.